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Retiring Before 65? Bridging the Gap to Medicare

Options for covering the gap between retiring and turning 65 and becoming Medicare-eligible -- COBRA, the ACA Marketplace, and what changes once Medicare starts.

Health insurance5 min readReviewed 2026-09-17

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Short answer

Retiring before 65 means losing employer coverage before Medicare eligibility begins -- this is the same kind of qualifying event as any other job-based coverage loss, opening a 60-day Special Enrollment Period for ACA Marketplace coverage. Your options during the gap are generally COBRA (continuing your employer plan, usually at full cost) or a Marketplace plan, which may include a premium tax credit based on your retirement income -- often lower than your working income, which can mean a larger subsidy than you'd expect.

Use this before you call.

Retiring before 65? Call GetFastRates.com for a free review of your coverage bridge options.

Note your exact retirement date and employer coverage end date -- this starts your 60-day Special Enrollment Period window.

Compare your COBRA quote against Marketplace options using the COBRA vs. Marketplace comparison tool.

Estimate your retirement-year income, which is often lower than your working income and can affect your subsidy.

Plan for the transition to Medicare -- mark your 65th birthday and use the Medicare Enrollment Calculator when that approaches.

Call to review COBRA, Marketplace, and timing together before you decide.

Retirement counts as a job-based coverage loss

Voluntarily retiring and losing your employer plan opens the same 60-day Special Enrollment Period as an involuntary job loss -- you can enroll in a Marketplace plan starting up to 60 days before your coverage ends, or within 60 days after.

COBRA vs. Marketplace during the bridge years

COBRA lets you keep your exact employer plan, generally at the full premium plus up to a 2% administrative fee -- often expensive. A Marketplace plan may cost less once a premium tax credit is applied, especially since retirement income is frequently lower than working income. The COBRA vs. Marketplace comparison tool gives you a real number to compare against your actual COBRA quote.

The bridge has an end date: Medicare

Once you turn 65, Medicare's own enrollment rules take over -- a different system from the ACA Marketplace. Use the Medicare Enrollment Calculator as that date approaches to see your exact 7-month Initial Enrollment Period window.

Common questions about this topic

Is COBRA or a Marketplace plan better for early retirement?

It depends on your COBRA quote, your retirement income, and whether a premium tax credit applies. Since retirement income is often lower than working income, many early retirees find Marketplace coverage costs less than COBRA -- but the only way to know is to compare your real numbers.

Do I need to do anything differently when I turn 65?

Yes -- Medicare has its own Initial Enrollment Period, separate from ACA Marketplace rules, and missing it can mean a lifetime late-enrollment penalty. Use the Medicare Enrollment Calculator as your 65th birthday approaches.

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